Legal Question in Credit and Debt Law in Georgia

You made the poor decision to get into that kind of deal, so you deal with the consequences. You may find that no matter what you pay for insurance, it won't cover any accidents or damages because you and your friends are defrauding the insurer with your deal.

There is so much wrong with this I don't know where to start. First, if there is a lien and you do not own the car, then you did not buy the car. You are renting the car and its in someone else's name. I wonder whether they bothered to add you to their policy as an authorized user? Probably not, which means that you are engaging in insurance fraud too.

I don't know who "they" that wants you to pay the insurance increase is but the answer is probably no, you do not have to pay the increased costs for insurance. What you should do is take the car back to your friend and walk away completely from this deal since you have not really bought the car.

However, I don't know all the details and I don't know what you have invested. Your other option may be to really buy the car by paying off the lienholder what they are owed and paying the rest to your friend (if any as I do not know what the car is worth and if its worth more or less than the loan balance). If you want to make payments, then get your own car loan. In such case, you will need to coordinate this between your lender and your friend's lender so that the title can be recorded in your name and any liens recorded (if you are financing the car with your lender). Then you can get insurance in your name and your friend can worry about her own DUI.